Marriage can look very different five or ten years after the wedding. Maybe one of you started a business. You inherited money. One spouse left work to raise children. You bought a house, took on debt, or started combining money that used to stay separate.
A postnuptial agreement can help put some of those financial decisions in writing after you are already married. Because you are spouses, California law looks closely at these agreements. Both people need to know what they are agreeing to, and one spouse should not use the agreement to take advantage of the other. Learn more about postnuptial agreements from Law Offices of Bradley D. Bayan.
A postnuptial agreement can address property and money issues that may arise during the marriage. For example, you may have started a company and want to decide how the business will be treated if the marriage ends. You may have inherited money from a parent and used some of it toward the house. Perhaps you and your spouse simply want clearer rules about investment accounts, real estate, or debt.
That needs to be done carefully. If you are changing property from community property to separate property, or vice versa, the wording matters. Do not assume that putting both of your signatures on a homemade agreement will settle the issue.
Spouses in California can make agreements about their property after marriage. There is one big difference between a postnuptial agreement and an ordinary contract. You and your spouse already owe legal duties to each other. California treats spouses as fiduciaries, which means each person is expected to act fairly and disclose important financial information. That matters when one spouse handles most of the money.
Suppose your spouse owns a business and knows far more about its finances than you do. If you are being asked to give up an interest in that business, you should know what you may be giving up before you sign. The same goes for real estate, investments, retirement accounts, and other valuable property.
You do not have to be planning a divorce to consider a postnuptial agreement. Sometimes the finances simply change. One spouse may have received a large inheritance. A business that was once small may now be worth considerably more. You might be buying a second property or taking on debt to start a company.
A change in work can matter too. If one spouse leaves a career to care for children, the financial arrangement between you may look very different than it did when you first married.
Some couples also consider a postnuptial agreement after marital problems. They may want to stay together but feel they need to address money more clearly before they can move forward. Whatever brought you to the discussion, start with a full picture of what you both own and owe.
Problems often begin with the way the agreement was made. If one spouse hides money or leaves out major assets, that can become an issue later. So can pressure.
Imagine being handed an agreement after a serious argument and being told to sign it that night. That is very different from having time to read it, ask questions, and speak with your own attorney.
If one spouse gives up a large share of a house, business, or investment account and receives very little in return, a court may look closely at what happened. A postnuptial agreement should not depend on one person being confused, rushed, or kept in the dark.
Property can become mixed together during a marriage faster than people realize. You may have owned the house before the wedding, but marital income may have paid the mortgage for years. Perhaps you inherited money and later deposited it into a joint account. A business may have started with separate funds but grown while both spouses were married.
A family law attorney can look at where the property came from, how it has been handled, and what rights you may already have before the agreement changes anything.
If your spouse’s lawyer drafted the agreement, having your own attorney review it is especially useful. You should know exactly what you are keeping, what you are giving up, and what the document could mean later.
Here at the Law Offices of Bradley D. Bayan, we help people in Redwood City and throughout San Mateo County with family law and marital property issues. You may already have an agreement sitting in front of you. You may only know that the way you and your spouse handle money no longer makes sense.
We can review the property, debts, and financial concerns involved and explain what the agreement would actually change. Reach out to our Redwood City office at (650) 364-3600 to schedule a consultation before you sign.
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